Hard false. Have had 2 eBay transactions totalling almost $1,000 that Paypal just sat and did nothing about even though there was no tracking and no proof of goods delivered.
Never, ever trust the bullshit that Paypal sells you.
I had a guy buy a cell phone from me using Paypal and eBay and the phone was perfect. After a month he contacted eBay and said that the screen was broken and both eBay and PayPal stood behind him and refunded the money. Now I have a phone with a broken screen that was fine plus he used it for a month before filing a claim.
You should have filed a claim with your credit card company.